Phoenix Gold Signs Letter of Intent for Option to Acquire up to 75% of a Lithium Project in Europe

Vancouver, British Columbia--(Newsfile Corp. - April 15, 2021) - Phoenix Gold Resources Corp. (TSXV: PXA) ("Phoenix" or the "Company") is pleased to announce that it has signed a Letter Of Intent (LOI) with ENE-MIN Development Corp. ("ENE-MIN" or the "Optionor") for an exclusive option (the "Option") to acquire up to 75% interest in the LiBeGa Lithium Project (the "Project"), comprising adjoining perimeters (concessions or mineral claims) covering a total of 27 km² in Sibiu County, Romania (the "Property").

Pursuant to the LOI, the Company has paid a refundable CA$250,000 good faith due diligence deposit and has initiated an exclusive comprehensive confidential evaluation of the Project. If the result of its 56-day due diligence of the Property is found to be satisfactory, the Company will have the Option to:

(a) acquire a 50% interest in the Property by making a further payment of CA$250,000 and issuing 15,000,000 common shares of the Company at a deemed price of $0.50 per common share; and

(b) to earn an additional 25% interest in the Property over the next 24 months by completing a geological technical report that includes a mineral resource estimate (MRE) in accordance with Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and its related Form 43-101F1, and issuing an additional 15,000,000 common shares of the Company at a deemed price of $0.50 per common share. Additionally, if the MRE reaches or exceeds 30 million tonnes Li₂O at not less than 0.6% cut-off, Phoenix is obliged to issue an additional 5,000,000 common shares in Phoenix at a deemed price of $0.50 per common share.

After acquiring the initial 50% interest in the Property, Phoenix will assume all payments and expenses required to maintain the Property in good standing and carry out all exploration work going forward as operator under a joint venture, with costs of exploration and development shared pro rata in proportion to the parties ownership interests in the Property. Under the Option, there is also a 5 km wide area of interest (AOI) extending perpendicular from the external boundaries of the Property that is also subject to the terms of the Option in the event either party acquires any mineral property rights with the AOI during the term of the Option. The Company has exclusivity on the Property from the date of the LOI until termination of the LOI. There will be no finders fees or commissions paid in respect of the Option or any acquisition of the Property contemplated thereby. The Optionor is arm's length to the Optionee.

Any issuance of common shares of the Company to the Optionor pursuant to the Option would be subject to a four month hold and any escrow or resale restrictions under the policies of the TSX Venture Exchange and applicable securities laws.

The Option and any acquisition of an interest in the Property is subject to satisfactory due diligence of the Company and approval of the TSX Venture Exchange.

The Property is located approximately 32 kilometres south southwest from the city of Sibiu with all-season roads providing access to the project area. There are also numerous connection points to grid-scale power, and water supplies are abundant. In addition to holding a valid Exploration License for the Property, the Optionor has also secured the required authorization from local archeological and water departments, and has received a positive phase one evaluation for the Project's main environmental permit.

Multiple areas within the Property have been the subject of significant historical surface and underground exploration, development and exploitation work carried out during several phases beginning as far back as the 1960's through to the 1990's. In the past 4 years, over CA$3.5 million in assessment work has targeted further evaluation and development of the Project.

"We are particularly pleased to have secured the potential for this highly promising lithium project in Europe, with extensive structural underground workings and excellent additional exploration potential. With a clear pathway as a battery metals company, we will have greater options to consider on the precious-metals side. Now we can get started on our review of the vast amount of Property information and data in our exclusive due diligence," commented Phoenix CEO and Director, Andrew Lee.

The technical content of this news release has been reviewed and approved by John Langton, M.Sc,, P.Geo., an independent qualified person as defined by NI 43-101.

About Phoenix Gold Resources Corp.

Phoenix Gold Resources Corp. is a mineral exploration and development company, focused on exploration, development and acquisition of mineral properties. The Company's Phoenix Gold Project consists of the Plumas Property and Eldorado, covering approximately 24 hectares in the Battle Mountain Mining District, Nevada, which is host to a series of gold mines. The York Harbour Property is a 3,900 hectare copper and zinc prospect in the Bay Islands region of Newfoundland that includes the past producing York Harbour Mine.

For further information:

Andrew Lee
CEO, President and Director
Telephone: 778-302-2257 | Email: pxagold@gmail.com

Cautionary Statement Regarding Forward-Looking Information

This news release may contain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Forward-looking statements herein include but are not limited to statements relating to satisfactory completion of due diligence and any acquisition under the Option and are necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to business, market and economic risks, uncertainties and contingencies that may cause actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements. Readers are cautioned not to put undue reliance on these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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